Eight categories of sports relating spending were analysed and the calculations displayed in table 1 below. All values were taken from the 2009/10 HBS except for the ‘Sports/Leisure Wear’ value. This value had to be projected forward from the 2004/05 HBS as no distinct corresponding category existed in the 2009/10 survey. To find this value it was assumed that the share of ‘Sports/Leisure Wear’ spending in total clothing and footwear in 2004/05 remained the same in 2009/10.
It is possible to project forward to get a value for say 2012 but this requires making certain simplifying assumptions. In particular one can use the change in the consumer price index for each of the categories above to estimate weekly average expenditure per household in 2012. Thus we are assuming a price change only and quantity purchased has remained the same (which is debatable for many of the goods above although any changes in quantities purchased between 2009 and 2012 should not be too significant). Table 2 displays these calculations.
corresponds to 1.20% of personal consumption and 0.61% of GDP in that year. This represents a fall on the 2009/10
figures although in our calculations the primary reason for this has been decreases on the prices associated with these goods.
The values are also much lower than the €1,885.6 million estimate providing by Indecon. Even the 2009/10 estimate is almost 60% below this figure. One of the reasons for this is that Indecon adopted a much broader definition of sports related purchases and included a proportion of the money that households spent on items such as travel, books & newspapers, TV licence and subscriptions and school & university fees. It is also the case that Indecon produced their estimates at the peak of the economic boom. A proper comparison with the Indecon results would require further research but in ignoring these secondary effects, the estimates from this blog are probably a little on the downside. However, even allowing for these secondary effects, it is clear that the recent recession has had a negative effect on sports purchases and this blog has provided a first attempt at quantifying that effect.